Standard&Poor's Ratings Services today said that Aquila Inc.'s (BBB-/Negative/A-3) sale of its Southeast Texas and Mid-Continent natural gas pipeline systems, natural gas and gas liquids processing assets, and its 50% ownership in the Oasis pipeline system to Energy Transfer Co. will not immediately affect Aquila's credit ratings. The sale, valued at $265 million in cash, is a positive step toward reducing the company's debt and is part of Aquila's continuing plan of asset divestiture. Aquila will need to further reduce its business and financial risk by selling assets and improving its utility operations to stabilize its creditworthiness.
